Part-time retirement and labor participation
Increasing labor force participation of the elderly remains necessary to equally divide the costs of the Dutch pension system over younger and older generations. Part-time retirement is often mentioned as a policy instrument which can achieve this. But does part-time retirement really increase labor force participation? This working paper uses data from a stated preferences experiment in the Netherlands to study this research question. The main finding is that replacing full-time pension schemes with schemes that offer part-time retirement opportunities increases the retirement age, but decreases labor force participation.
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